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The purpose of this paper is to examine the likely economy-wide impacts of the complete shutdown of the motor vehicle industry on output and employment in Australia using the latest input-output (IO) table (2009-2010).

Both supply- and demand-driven IO models are employed to determine the extent, and pattern, of the resulting output and job losses in upstream and downstream industries. An analysis of the first-order field of influence is also conducted to observe how output multipliers in other sectors respond to changes in the self-use-input-requirement of the professional, scientific and technical services (PSTS) industry.

The PSTS industry (with a significant research and development (R & D) component and the highest forward linkage index) would be hardest hit with the collapse of the motor vehicle industry.

This paper identifies a number of industries that are more likely to be heavily influenced by the resulting lack of R & D in the PSTS industry in the near future. Unless more funding is allocated to other research and technology-intensive industries, the extinction of the motor vehicle industry, coupled with the recent budgetary cuts for strategic organisations such as the Commonwealth Scientific and Industrial Research Organisation, can reduce the positive spillover effects of R & D activities on the Australian economy.

This is the first study to examine the effects of the shutdown of the motor vehicle industry on employment in Australia. The results also have broader implications for other developed countries that have declining motor vehicle industries. The findings suggest that the global decline in the motor vehicle industry can adversely affect investment in R & D in upstream and downstream industries. More generally, the results suggest that the shift in motor vehicle production to developing countries, will contribute to increased R & D intensity in them at the expense of developed countries.

Introduction The growth in market share achieved by foreign car manufacturers during the last few years is a statistic frequently reported by the news media, but attention also needs to be given to the economic effects of this change in consumer preference.

Building industrial clusters is getting much more political attention and strategic orientation in all developing countries. This study started by revising the conceptual and theoretical frameworks for industrial clusters, followed by some insights and contributions about empirical bases for clusters' dynamics and processes. The study focused on the case of Agadir Agreement between four Arab countries (Egypt, Jordon, Morocco, and Tunisia), which was initiated after the Euro-Mediterranean partnerships, and the rationale of the agreement was based on the concept of cumulative value-added origin. The study based its methodology on analyzing the international and bilateral trade flows of six industrial goods from the automotive sector among the four countries and with the EU countries to detect the degree of industrial collaboration and the achieved success of each country in this sector. The study indicated that the four countries used the concept of industrial clusters for economic development, but the results of the analysis showed that till now Agadir Agreement only achieved a shallow integration, while failed to deeply integrate as one big collaborative industrial cluster.

The purpose of this paper is to test Chandler’s dictum that “unless structure follows strategy, inefficiency results” (Chandler, 1962, p. 314) by assessing the continuing efforts to align structure with strategy in the automobile industry from the turn of the century through the 1980s.

The historical analysis utilized conceptual mediation and moderation methodologies wherein the impacts of strategy on structure were mediated by their impacts on coordination and control, and moderated by external conditions such as uncertainty, variability, interdependence and asset specificity.

The findings demonstrate that structure followed differing strategies at General Motors, Ford and Chrysler, and provide strong support for Chandler’s dictum. The findings demonstrate the difficulties of maintaining alignment of strategy and structure with changes in the external competitive environment, and the severe consequences of a misalignment of strategy and structure. The findings also demonstrate that structure alone is not sufficient to implement strategy effectively, and that firms must judiciously utilize both internal firm and external market coordinating and control mechanisms to optimize performance.

Limitations include that this is a study of a single industry over an extended, but specific time period.

Generalization is limited by a study of a single industry, but there are numerous implications for organizational design and strategy implementation that are not industry-specific.

Chandler’s dictum is often cited, but this is one of very few studies that demonstrate the relationship between specific organizational designs and company strategies, and the consequences of misaligning strategy and structure.

The Australian vehicle industry has always struggled to remain viable despite relying heavily on government protection. Now it faces the prospect of competing on its own merits, and has turned to JIT as one way to reduce manufacturing costs. However, the resultant exposure of the total supply network to the effects of isolated strikes has become a major concern. This article traces relevant events since JIT became commonplace. The gravity of the situation has forced the principal union and the motor corporations to co‐operate more, but there are fewer restraints on the other unions representing small groups in a host of supplier firms. Attempts are in train to address these structural difficulties too, but they have been greeted with some scepticism.

International business

Undergraduate/graduate/executive education.

China has become the world's largest producer of automobiles, surpassing the USA and Japan. The Chinese auto industry differs quite significantly from those countries though. While the industry exhibits a substantial degree of concentration in the USA and Japan in early 2011, it remained highly fragmented in China. The Chinese Central Government had announced a desire for consolidation, yet it remained unclear whether a significant shakeout would occur in the near term.

Like many Chinese automakers, Chang'an partnered with well-known global auto makers to develop, produce, and distribute its products. In the coming years, Chang'an hoped to develop more independence from its foreign partners, including the production and distribution of self-branded cars. However, the company grappled with how it could strive for independence while managing its existing joint ventures. Executives worried too about how to compete with foreign automakers who had achieved global economies of scale.

The case provides a rich description of the evolution of the Chinese auto industry, and it documents how the Chinese industry differs from other global markets. Readers can analyze the extent to which they believe scale economies provide foreign firms an advantage over smaller Chinese rivals, and they can evaluate the conventional wisdom regarding the industry's minimum efficient scale. The case also provides a detailed account of Chang'an's rise to prominence. The case concludes by offering an in-depth description of the firm's key rivals, and it presents the key questions being considered by Chang'an executives in 2011.

Enables students to examine how and why an industry's structure can differ substantially across geographic markets.

Enables students to examine whether the need to achieve economies of scale may cause substantial consolidation in the Chinese auto industry.

Provides an opportunity to evaluate the pros and cons of the joint venture strategies employed in China.

Provides an opportunity to examine how a relatively small firm can position itself against large multinationals in a high-growth emerging market.

Teaching notes.

By the year 2000, will there be one major global multinational automobile company supplying the entire planet? Extrapolating from trends in the 1980s, it is entirely possible to speculate that one major company—having swallowed up the entire global competition, with all the attendant benefits of economies of size and scale, high R&D expenditures, with adaptations of its products and prices to local market needs on a continent‐wide basis—will produce cars that consumers everywhere will buy. Should this occur, the next question we need to ask is: Will this company have its headquarters in Japan, the United States, or Europe? Again, if you were to follow the trends in the media, you would forecast a high probability that the “One Big Auto” company will be Japanese. However, my research suggests a somewhat different scenario for the future. While there will be a concentration in the industry worldwide, and fewer, larger companies will dominate the industry, there have been many unanticipated developments. Principal among these is the persistence of many companies in the industry, which are increasingly interlocked through joint ventures, so that it is no longer relevant to think of an American, European, or Japanese car. Rather, the final product is sourced from dozens of different countries.

Motor-vehicle-related events (MVEs) are the leading cause of on-duty death for law enforcement officers, yet little is known about how officers view this significant job hazard. The purpose of this paper is to explore officers’ motor-vehicle risk perception and examine how prior on-duty MVEs and the death or injury of a fellow officer influences this perception.

A state-wide random sample of 136 law enforcement agencies was drawn using publically accessible databases, stratified on type and size of agency. In total, 60 agencies agreed to participate and a cross-sectional questionnaire was distributed to 1,466 officers. Using six-point Likert scales, composite scores for motor-vehicle and intentional violence risk perception were derived. A linear regression multivariable model was used to examine factors affecting motor-vehicle risk perception.

Motor-vehicle risk perception scores were significantly higher than intentional violence scores. A prior on-duty motor-vehicle crash, prior roadside incident, or knowledge of fellow officer’s injury or death from a MVE significantly increased motor-vehicle risk perception scores. After controlling for potential confounders though, only prior on-duty crashes and roadside incidents impacted motor-vehicle risk perception.

The study comprised primarily small, rural agencies and generalizability may be limited. Also, although the data were collected anonymously, reporting and response biases may affect these findings.

This study involved a large and diverse cohort of officers and explored motor-vehicle risk perception. A better understanding of officers’ risk perceptions will assist in the development and implementation of occupational injury prevention programs, training, and policy.